KEY POINTS:
A royal chance to upset Australia and revive their tri-series cricket campaign literally slipped through New Zealand's fingers tonight.
The world champions staggered to their fourth consecutive win, by two wickets, reaching their target of 219 with eight balls to spare after being 17 for three.
Missed chances haunted the Black Caps as Australia's topscorer Michael Clarke was dropped twice, while the elementary run out of expert finisher Michael Hussey was botched.
Clarke was shelled by James Franklin at fine leg off bowling standout Mark Gillespie on 16, then by wicketkeeper Brendon McCullum, a tough inside edge standing up to Franklin, on 42.
Clarke was eventually snaffled by Ross Taylor off Daniel Vettori on 75 but the horse had bolted, Hussey finishing the match with a six off Nathan Astle to be 65 not out after adding 90 for the fifth wicket with Clarke.
Earlier, with Australia 116 for four, Clarke and Hussey were stranded at one end but Hamish Marshall fumbled at cover, flicked it to Vettori who broke the stumps without the ball with Hussey just short on 18.
It was cruel for Vettori who took a crucial two for 41 after Andrew Symonds took 11 off his first over, while the lion-hearted Gillespie took two for 34.
After a blazing 89 off 87 balls from a rejuvenated Craig McMillan lifted New Zealand to 218, the pacemen ripped through Australia's imposing top order to taste a rare moment of dominance.
James Franklin removed Adam Gilchrist caught behind for three then Michael Mason, in for the injured Shane Bond, relished the bouncy surface as Matthew Hayden was caught at cover and Ricky Ponting trapped in front for five.
Tuesday's match against England in Adelaide now looms as a must-win for New Zealand's finals hopes.
It was a triumphant return for veteran McMillan, 30, whose career looked down and out in June when he lost his New Zealand Cricket (NZC) contract.
His heroics were badly needed after the familiar top-order collapse saw them 53 for four after winning the toss and batting first.
Nathan Astle and the recalled Hamish Marshall were nicked out early by speedster Brett Lee then an out of sorts captain Stephen Fleming, on 12, and Ross Taylor, 26, both threw their wickets away when they skied Stuart Clark to Hussey's safe hands.
McMillan had a huge stroke of luck on one when he edged Glenn McGrath to Gilchrist but Pakistani umpire Asad Rauf declined the appeal to everyone's amazement.
Undeterred, McMillan hit Clark over long-on for six and rode his luck to notch his first half-century in 11 innings for New Zealand and highest score against Australia, beating his 63 in Napier in 2004-05.
He belted seven fours and three sixes and looked destined for his first century since Pakistan in Rawalpindi in 2002, when his innings ended controversially in the 46th over.
He stood his ground after being caught and bowled off a McGrath full toss which appeared over waist height, but wasn't called no-ball by the umpires.
A sub-150 total looked a chance before McMillan and Franklin added a crucial 57 off 39 balls for the eighth wicket.
NZ v Australia Scoreboard
Scoreboard from the tri-series one-day cricket match between New Zealand and Australia at the Sydney Cricket Ground:
New Zealand
S Fleming c Hussey b Clark 12
N Astle c Gilchrist b Lee 0
H Marshall c Gilchrist b Lee 0
R Taylor c Hussey b Clark 26
P Fulton c Hayden b Clark 19
C McMillan c and b McGrath 89
B McCullum lbw b McGrath 15
D Vettori c Ponting b Clark 6
J Franklin c Hayden b McGrath 18
M Gillespie not out 6
M Mason b Bracken 4
Extras (2b, 12lb, 5w, 4nb) 23
Total (47.4 overs) 218
Fall: 5 (Astle), 7 (Marshall), 38 (Fleming), 53 (Taylor), 84 (Fulton), 126 (McCullum), 136 (Vettori), 193 (Franklin), 205 (McMillan), 218 (Mason).
Bowling: B Lee 10-1-45-2 (2nb, 1w), N Bracken 8.4-2-33-1, G McGrath 10-1-24-3 (1nb), S Clark 10-1-54-4 (1nb), A Symonds 8-0-44-0 (4w), C White 1-0-6-0.
Australia
A Gilchrist c McCullum b Franklin 3
M Hayden c Taylor b Mason 0
M Clarke c Taylor b Vettori 75
R Ponting lbw b Mason 5
A Symonds b Vettori 38
M Hussey not out 65
C White c Fulton b Gillespie 5
B Lee c Marshall b Gillespie 2
N Bracken c Taylor b McMillan 14
S Clark not out 1
Extras (6lb, 4w, 6nb) 16
Total (for 8 wkts, 48.4 overs) 224
Fall: 6 (Gilchrist), 6 (Hayden), 17 (Ponting), 77 (Symonds), 167 (Clarke), 175 (White), 198 (Lee), 217 Bracken).
Bowling: M Mason 10-2-46-2 (2nb, 2w), J Franklin 10-1-47-1 (1nb,1w), M Gillespie 10-2-34-2 (3nb, 1w), D Vettori 10-0-41-2, N Astle 2.4-0-22-0, C McMillan 6-0-28-1.
Result: Australia won by two wickets.
- NZPA